Hi all, after looking at IFE's announcement today, I actually see this as a massive step forward for the company.
Previously, shareholders were told to expect a 1 for 2 rights issue at 75 cents to raise ~$22m. However, it appeared clear for some time that as TRF had a majority of this, they would not fully participate as they didn't have the cash.
As a trade-off, management have been able to offer half of this with an option sweetener but have fully underwritten it so as far as IronClad is concerned, they now have $11m cash.
This brings total raised to ~$20m with the remainder now potentialy raised through debt. If so, this could be the last chance to buy in off-market before production.
What also impressed me was again clarification that production plans are for the end of the year so all is well and Iron prices look to have increased to up to $160-$180 per tonne.
I intented to take my rights and the market does seem to like the announcement with the shares up 5% today.
EXCITING!
Regards, W
As always DYOR, this is my opinion.
TYX Price at posting:
78.5¢ Sentiment: ST Buy Disclosure: Held
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